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Hike in Oil and Natural gas prices: Biden bans import 

Biden Bans Russian Oil Imports; Consumers bear price Spikes.

On Tuesday, US President Joe Biden announced a ban on US imports of Russian oil, the latest attempt to discontinue foreign revenue as punishment for the invasion of Ukraine. “Today, I am announcing that the US is targeting the main lifeline of the Russian economy,” Biden said at the White House.

“We ban all imports of Russian oil, gas and energy. This means that the import of Russian oil will no longer be accepted in American ports, and the American people will deal another blow to Putin’s war machine.

Recently on Sunday, the Biden administration appeared unlikely to support a move that Russian critics say is best – perhaps the only – to force Moscow to withdraw.

biden: Biden bans Russian oil import as gas prices hit record high in US -  Times of India

But on Tuesday, Biden noted that Russia’s oil ban drew strong bipartite support in Congress.

Russian oil accounted for about 3% of all crude shipments to the United States last year. According to the United States Energy Information Administration, Russian oil and oil products account for about 8% of US oil imports.

European nations are more dependent on Russian oil and gas, and Mr Biden said that US allies might not be able to enact import bans. “We are moving forward with this ban knowing that many of our European allies and partners may not join us,” Biden said.

“We can take this critical step where the other cannot, but we are closely working with Europe and other partners to develop a long-term strategy and reduce dependency on the Russian energy sources”.

Biden's Russian Energy Ban Will Hike Gas Prices, Could Reorder World -  Rolling Stone

A dependency on Russia’s natural gas accounts for a third of Europe’s consumption. But The United States does not import natural gas from Russia.

Caroline Bain, Head of Commodities, Economics at Capital Economics, said: “In terms of supply’s impact on the market, it won’t be too big in the US, but it’s a big statement to be made. There will also be a considerable amount of pressure on the majority of consumers, including the European Union.

“The European Union will likely take a more deliberate approach and will not announce a complete ban tomorrow, but find a way reduce dependence on Russian energy.”

Crude oil futures extended gains in the market and rose up from 4% to $124.21 in New York.

The House would vote on legislation to ban Russian oil and energy imports despite the executive action being taken by Joe Biden. The House Majority Leader Steny Hoyer told this to the reporters, as part of what he called a unified effort by the administration and Congress “to impose the most profound possible consequences on Russia’s criminal conduct”.

“A general agreement is required to be made to take additional action, and I think you will see that the cessation of purchases of Russian oil and the energy products would be overwhelmingly applied in a bipartisan manner,” the Democrat said.

Hoyer said that other laws would be taken into consideration and suspend the normal trade relations with Russia, allowing the USA to collect taxes on products from Russia and Belarus. Relationships can be restored depending on certain circumstances, but the majority leader said they had no further details.

Record high gas prices: Why Joe Biden is not to blame

On a Tuesday afternoon, during a visit to Fort Worth, Texas, to speak with military veterans, reporters asked the president when he was expelled from Air Force One if he had an announcement or a message to the American people about gas prices.

The president of the USA, Joe Biden, said: “The prices are going to rise up,”. And when he was asked in the sequel, “What can be done by you about this?” He replied: “There is not much I can do at the moment Russia is responsible”.

The move of the US was followed by the appeal of the president of Ukraine, Volodymyr Zelensky, to restrict imports. It was an outrageous omission to massive approbation over the assault. The energy exports have kept flowing of cash to Russia, despite many prohibitions on their finance sector.

“We’re trying to limit the pain Americans are feeling with pumps,” Biden said, explaining that he was reluctant to impose energy sanctions when the conflict began two weeks ago.

The White House resisted cutting off Russian energy by noting that it could cause the price of US gasoline to increase.

He admitted on Tuesday that US gas prices, which hit high records this week, could rise further due to Russia’s oil ban. The US and its allies have released 60 million barrels of oil from strategic stockpiles to subside oil prices, and Biden says his administration will limit the financial impact of a “Moscow’s price increase” on US families. He has asked to take additional steps.

“This is the step we are taking to make Putin more painful, but it will cost us here in the United States as well,” Biden said. “This will also be understood by republicans and democrats, and Republicans and Democrats have likewise made it clear that this must be done.
America and its international partners have imposed sanctions on Russia’s largest banks, Central banks and the Ministry of Finance. They have moved to remove certain financial institutions from the International Interbank Communications Association; the payment will be locked out.

However, rules enacted by the department of the US Treasury have allowed Russia’s energy transactions through unlicensed non-US banks to minimize disruption to the global energy markets.

Markets rattled by push for Russian oil ban in reaction to Ukraine war |  Financial Times

Inflation is the highest in 40 years and is driven primarily by gas prices, causing political damage to Biden towards the mid-term. Ukraine’s aggression can exacerbate inflation and chain of supply problems. Biden previously emphasized that Russia’s energy carve-out helps protect families and businesses in the United States.

The world’s largest natural gas exporters and the second-largest oil exporters – Saudi Arabia, could hurt, what US officials say is the key to the conflict with Putin. Analysts say the relationship with the US-Saudi is likely to play a significant role in the outcome of efforts to maintain the oil supply.

The Biden administration is reportedly considering measures to improve relations with Riyadh, which was damaged by the assassination of Washington Post journalist Jamal Khashoggi and the assassination of Crown Prince Mohammed bin Salman.

“Russia and Saudi Arabia are the two largest oil exporters in the world,” was said by David Rundell, a former diplomat of the US who turned into an Arabian Analyst.

“If we had a good relationship with Saudi Arabia, they would have intervened in the help, as we have done many times in the past. However, relations with Saudi Arabian leaders continue to deteriorate so get ready for $ 6 a gallon.”

Edited by Prakriti Arora

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